[ http://www.twinturbo.net/nissan/300zx/forums/main/view/1098617/Steering-knuckle-rubbing-new-rack-and-pinion.html ] It should be completely seated. There is a notch in the splined shaft that is clearance for the bolt. The OP in that post had the rack improperly clocked in the subframe which was causing his issue.
-Dan VTC Solenoid Caps and install instructions.
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